South Korea’s Samsung scrambles to find replacements for Japanese suppliers as trade row rumbles on
- Two of the materials targeted by Tokyo’s curbs are essential to making memory chips. A third is used in hi-tech TV screens and smartphone displays
- Analysts disagree on how long it would take South Korea to develop domestic production. Estimates range from a few months to more than 10 years
Seoul and Tokyo are embroiled in a bitter trade dispute, stemming from the Japanese government’s decision last month to impose restrictions on chemical exports crucial to chipmaking. Last week, Seoul and Tokyo removed each other from their “white lists” of trusted trading partners.
Two of the materials targeted by Japan’s curbs, hydrogen fluoride gas and photoresists, are essential to making memory chips, while a third, fluorinated polyamide, is used for hi-tech TV screens and smartphone displays, including hotly anticipated folding models from Samsung.
Tokyo’s move has also raised international concern about the effect on global supply chains and possible price increases for consumers worldwide.
“It’s true that we have been searching for ways to diversify the sources for materials and parts [following Japan’s export restrictions],” a Samsung spokeswoman said.
However, she denied a South Korean media report that the firm had decided to replace all the 220 or so Japanese chemicals and materials it uses for chip production with Korean or overseas products.